Why are most of the poor households deprived from the formal sector loans ?
Answers
Answered by
2
because formal sectors ask for collateral, and it is a time consuming work because they will delayed to issue the loans.
Answered by
0
Answer:
(i) Banks are less in rural areas , whereas informal sources are present in all villages
(ii) Absence of collateral and documentation which prevents rural people for getting bank loans
(iii) Formal sources provide loans only for productive purposes but informal sources provide credit for other purposes also
Explanation:
Similar questions